The company agrees to hold cheque until your next payday. At that time, depending on particular plan, lender deposits cheque, you redeem cheque by paying amount owed in cash, or you roll-over cheque by paying a fee to extend loan for another two weeks.

A payday loan is very convenient if you find yourself a little short of funds at any time. The most obvious drawback of a Payday Loan is that they can be expensive. The interest rate varies from lender to lender so do shop around to find best deal.

If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next pay cheque and still have enough to make it to next payday.

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Negotiate with more than one lender. Don't be afraid to make lenders and brokers compete for your business by letting them know that you're shopping for best deal. Ask each lender to lower fees or interest rate. And ask each to meet or beat terms of other lenders.

Before you sign, read all paperwork carefully . It sounds boring and time consuming but it is better to be safe than sorry. If Home Equity Loan isn't what you expected or wanted, don't sign papers. Either negotiate changes or walk away. You will be surprised at what you can achieve by being firm.

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